Question

1-Briefly but concisely describe four current trends in the securities industry in Canada.

2- Briefly but concisely discuss some challenges the Canadian Exchanges (e.g., TSX) face, and explain what the Exchanges are doing to overcome these challenges and toremain competitive.

Answer 1

Ans 1) : The year 2018 has been a sluggish year for the world as far as economy and capital security market is concern and to overcome and move at a faster growth rate , Canadian exchanges especially TSX has made a major change in the following areas:

1)Modification in take-over, acquisition and merger where from now if 25% of the shareholder are agreeing for a deal to takeover a public limited company , in turn it will help in quicker and faster merger and acquisition reducing the cost of the same and enhancing the cost and return benefit in Canada, but on the other side it can create a conflict and reduce the bargaining power of other investor on decision making but till now it has help the Canadian economy to grow at faster pace as compared to others

2) Change on guidagnce on pricing offerings in which it has been made mandatory on pricing prospectus offerings and private placements when an issuer has recently disclosed material information. The Pricing Guidance sets out the TSX’s expectations that offerings by listed issuers should be priced five clear trading days after any dissemination of material information to ensure that the market price appropriately prices the impact of the material information that has been disclosed which will help in proper pricing of issues.

3) As Canada has allowed cannabis companies to trade providing access to us market, because of such listing of these firms has also increased helping the Canadian economy to grow and exchange business and investment turnover.

4) Regulators Targeting Exchanges. The launch of “Operation Cryptosweep” – a multijurisdictional campaign aimed at investigating crypto-currency-related investment products as it has reduced the value of investment.

Ans 2): The challenges faced by the Canadian exchanges are as follows:-

1)To enhance their technologies so as improve their interaction with the brokers and investor and make it a hassle free transaction with a lower fee for the transaction by improving the transaction ability.

2)Providing access to the investor with all variety of investment option at one place i.e capital market,money market,derivaties etc and to compete with bigger exchanges in the world.For example London exchange.

3) Pure Trading, which will not have listings but will instead facilitate trading of TSX-listed equities, will be able to offer speed, low cost and efficiency in the coming future.

4)Meeting the regulatory guidelines from time to time and make the business volume increased for the future growth of the market.

and in total canadian exchange is providing a higher growth and side by side it needs to compete and follow the regulatory guidlines from the time to time so as to increase the investment value with the help of adopting better technologies.